Construction faces a protracted period of economic uncertainty following the Brexit vote, while the prospect of a new Prime Minister and potentially an autumn general election will also prolong the political uncertainty.
Commenting on the vote to leave the EU, Glenigan’s Economics Director Allan Wilen said:
“Contractors and material suppliers will need to be especially alert to potential disruption to the timing and realisation of projects on their order books. Glenigan can help with the identification and securing of new projects to bridge gaps in shifting workloads.
Recent months have seen private sector investors delaying investment decisions ahead of the vote. We expect investors to now reappraise their industrial and commercial property development plans in light of the vote. The London commercial property market looks especially vulnerable as many financial institutions need to be located within the EU.
The economic and political uncertainty is also likely to dampen activity in the housing market and private housebuilding activity over the coming months.
In contrast the decision to leave could help boost opportunities in the hotel & leisure sector over the medium term as weaker exchange rates encourage more UK residents to holiday at home and attract overseas tourists.
Near term, the flow of public sector work should not be affected by the Brexit vote. The regulated utilities, the water industry, Network Rail and the National Grid, will continue to press on with planned capital programmes agreed with their regulator.”